Here are some resources to help you evaluate a potential investment purchase.
- The Lender Investment Calculator
- Bigger Pockets Investment Calculators
- Educational Resources for Estimating Costs
How Much Will I Make?
We can’t answer this question since (1) we can’t predict the future, and (2) it depends on a variety of factors, and no two situations are exactly the same. What we can do is provide you a few data points to help you:
- 2020 and 2021 appreciation were 15% annually
- Vacancy is usually 3 weeks or less for places under $1,800/month. As rent increases, vacancy time can also increase.
- It’s easiest to rent properties March-June. November and December are the slowest months for finding tenants.
- Client cash on cash returns in this market have ranged from 8% to 45%. Key factors include your amount down, if you’re leaving cash to renovate in a deal, or if you’re BRRRing and getting all or nearly all of your cash out.
- Taxes and insurance are pretty low in Chattanooga. There’s no special homeowners insurance rider or policy you need here.
- For single family homes, lawn care is the tenant’s responsibility. For multi-family, the landlord usually pays for it.
- Snow removal is not an issue here.